{"id":33543,"date":"2016-08-26T23:35:38","date_gmt":"2016-08-27T04:35:38","guid":{"rendered":"http:\/\/prefblog.com\/?p=33543"},"modified":"2016-08-26T23:35:38","modified_gmt":"2016-08-27T04:35:38","slug":"august-26-2016","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33543","title":{"rendered":"August 26, 2016"},"content":{"rendered":"

There was some moderately hawkish Fed chatter today<\/a>:<\/p>\n

Federal Reserve Chair Janet Yellen still has faith.<\/p>\n

On Friday she expressed confidence that tighter labor markets over time will push inflation back to the central bank\u2019s 2 percent goal, setting up a rate hike this year — possibly as soon as next month — if jobs data remain strong. That view breaks with a minority group of Fed officials who are more pessimistic about the relationship between labor markets and prices.
…<\/b>
Ending two months of public silence about her views, Yellen cited \u201ccontinued solid performance of the labor market\u201d and said the \u201ccase for an increase in the federal funds rate has strengthened in recent months\u201d in her speech Friday to central bankers and economists in Jackson Hole, Wyoming.<\/p>\n

Stocks initially rose after Yellen\u2019s remarks, only to decline after Stanley Fischer, the Fed\u2019s vice chairman, reiterated in an interview on CNBC that the possibility exists for two rate increases this year, starting as soon as September.<\/p>\n

Yellen\u2019s remarks also signaled she didn\u2019t need to see actual inflation rising toward 2 percent to raise interest rates. She said inflation would reach their 2 percent target \u201cover the next couple of years,\u201d and emphasized that gradual, timely moves were required \u201cto achieve and sustain employment and inflation near our statutory objectives.\u201d<\/p><\/blockquote>\n

So for what it’s worth – and remember, you’re reading this for free – I think that for the next year or so Fed hikes will be of the ‘one and done’ variety, rather than the steady increase variety. But eventually (probably after the Fed Rate has struggled carefully and cautiously to 1% and above) there will be a series of hikes, bang, bang, bang, bang, that will result in a very nasty environment for bonds.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.7757 %<\/td>\n1,693.0<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.7757 %<\/td>\n3,092.8<\/td>\n<\/tr>\n
Floater<\/td>\n4.85 %<\/td>\n4.63 %<\/td>\n76,552<\/td>\n16.10<\/td>\n4<\/td>\n-0.7757 %<\/td>\n1,782.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.84 %<\/td>\n-9.88 %<\/td>\n64,708<\/td>\n0.08<\/td>\n1<\/td>\n0.0396 %<\/td>\n2,881.5<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.05 %<\/td>\n4.22 %<\/td>\n104,131<\/td>\n2.25<\/td>\n5<\/td>\n0.0397 %<\/td>\n3,441.4<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0397 %<\/td>\n2,685.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.46 %<\/td>\n-0.95 %<\/td>\n76,907<\/td>\n0.18<\/td>\n12<\/td>\n-0.0420 %<\/td>\n2,697.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.10 %<\/td>\n4.98 %<\/td>\n107,183<\/td>\n14.99<\/td>\n26<\/td>\n-0.0441 %<\/td>\n2,915.1<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.89 %<\/td>\n4.14 %<\/td>\n147,225<\/td>\n7.09<\/td>\n89<\/td>\n0.3583 %<\/td>\n2,074.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n4.97 %<\/td>\n3.78 %<\/td>\n114,797<\/td>\n0.34<\/td>\n32<\/td>\n-0.0113 %<\/td>\n2,809.7<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.80 %<\/td>\n3.99 %<\/td>\n31,743<\/td>\n5.07<\/td>\n12<\/td>\n0.1959 %<\/td>\n2,208.0<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.C<\/td>\nFloater<\/td>\n-1.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 10.33
\nEvaluated at bid price : 10.33
\nBid-YTW : 4.63 %<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/td>\n-1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.40
\nBid-YTW : 10.37 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-1.52 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 10.39
\nEvaluated at bid price : 10.39
\nBid-YTW : 4.61 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n-1.04 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 10.50
\nEvaluated at bid price : 10.50
\nBid-YTW : 4.56 %<\/td>\n<\/tr>\n
CU.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 22.26
\nEvaluated at bid price : 22.62
\nBid-YTW : 4.98 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 17.86
\nBid-YTW : 7.77 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.83
\nBid-YTW : 3.91 %<\/td>\n<\/tr>\n
NA.PR.Q<\/td>\nFixedReset<\/td>\n1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.12
\nBid-YTW : 3.98 %<\/td>\n<\/tr>\n
PWF.PR.T<\/td>\nFixedReset<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 21.00
\nEvaluated at bid price : 21.00
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset<\/td>\n1.24 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 12.26
\nEvaluated at bid price : 12.26
\nBid-YTW : 4.88 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset<\/td>\n1.28 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.04
\nBid-YTW : 7.13 %<\/td>\n<\/tr>\n
SLF.PR.I<\/td>\nFixedReset<\/td>\n1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.50
\nBid-YTW : 7.03 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 13.23
\nEvaluated at bid price : 13.23
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n
BMO.PR.M<\/td>\nFixedReset<\/td>\n1.35 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.08
\nBid-YTW : 3.44 %<\/td>\n<\/tr>\n
MFC.PR.I<\/td>\nFixedReset<\/td>\n1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.89
\nBid-YTW : 6.10 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 15.25
\nEvaluated at bid price : 15.25
\nBid-YTW : 4.45 %<\/td>\n<\/tr>\n
BAM.PR.S<\/td>\nFloatingReset<\/td>\n2.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 14.65
\nEvaluated at bid price : 14.65
\nBid-YTW : 4.86 %<\/td>\n<\/tr>\n
MFC.PR.L<\/td>\nFixedReset<\/td>\n2.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.79
\nBid-YTW : 7.16 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset<\/td>\n3.66 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2046-08-26
\nMaturity Price : 12.19
\nEvaluated at bid price : 12.19
\nBid-YTW : 4.04 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
BIP.PR.C<\/td>\nFixedReset<\/td>\n180,740<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-09-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.32
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n
BMO.PR.K<\/td>\nDeemed-Retractible<\/td>\n154,283<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-11-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.26
\nBid-YTW : 1.12 %<\/td>\n<\/tr>\n
NA.PR.A<\/td>\nFixedReset<\/td>\n99,418<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-08-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.35
\nBid-YTW : 4.46 %<\/td>\n<\/tr>\n
RY.PR.L<\/td>\nFixedReset<\/td>\n49,925<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.25
\nBid-YTW : 3.55 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n43,400<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.63
\nBid-YTW : 5.46 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\n38,426<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 20.84
\nBid-YTW : 5.37 %<\/td>\n<\/tr>\n
There were 9 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\nQuote: 14.29 – 14.53
\nSpot Rate : 0.2400
\nAverage : 0.1735<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.29
\nBid-YTW : 9.72 %<\/td>\n<\/tr>\n

MFC.PR.F<\/td>\nFixedReset<\/td>\nQuote: 14.23 – 14.49
\nSpot Rate : 0.2600
\nAverage : 0.2083<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 14.23
\nBid-YTW : 9.73 %<\/td>\n<\/tr>\n

W.PR.J<\/td>\nPerpetual-Discount<\/td>\nQuote: 25.20 – 25.47
\nSpot Rate : 0.2700
\nAverage : 0.2183<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-09-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.20
\nBid-YTW : 3.70 %<\/td>\n<\/tr>\n

PVS.PR.E<\/td>\nSplitShare<\/td>\nQuote: 25.15 – 25.40
\nSpot Rate : 0.2500
\nAverage : 0.1985<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.15
\nBid-YTW : 5.39 %<\/td>\n<\/tr>\n

BNS.PR.B<\/td>\nFloatingReset<\/td>\nQuote: 22.74 – 22.92
\nSpot Rate : 0.1800
\nAverage : 0.1339<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.74
\nBid-YTW : 4.03 %<\/td>\n<\/tr>\n

W.PR.H<\/td>\nPerpetual-Discount<\/td>\nQuote: 25.22 – 25.42
\nSpot Rate : 0.2000
\nAverage : 0.1561<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-09-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.22
\nBid-YTW : 2.48 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

There was some moderately hawkish Fed chatter today: Federal Reserve Chair Janet Yellen still has faith. On Friday she expressed confidence that tighter labor markets over time will push inflation back to the central bank\u2019s …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-33543","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33543"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33543\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}